1Q 2022 INVESTOR PRESENTATION slide image

1Q 2022 INVESTOR PRESENTATION

Economic Outlook مصرف الإنماء alinma bank Improving economic outlook supportive for the banking sector, despite the rise of political tensions and Covid risks remaining Real GDP Growth (%) 10.0% 5.0% 0.0% -4.1% -5.0% 2020 Composite* Oil Price Avg / Barrel (USD) 140.0 3.2% 2021 3M Average SAIBOR (%) 2.0% 106.8 100.0 69.1 0.8% 0.9% 1.0% 60.0 41.3 20.0 0.0% 2020 2021 2022E 2020 2021 Inflation (%) 7.6% 2022E Government Expenditures % of GDP (%) 1.6% 2022E 26.0% Further rebound in real GDP growth The KSA economy is expected grow by 7.6% in 2022; this projection is however heavily reliant on the positive oil price outlook and the ability of the country to ramp up its expansion plans despite further outbreaks and rising political tensions. Vision 2030 expansion plans back on track Alongside an economic recovery, Vision 2030 plans are expected to accelerate. Stabilization of oil prices Following a year of strong recovery of oil prices, the average price for the composite index is expected to grow to $106.8 / barrel due to the political tensions in 1Q 2022 that will support economic growth. Rise in SAIBOR rates 3M average SAIBOR rates are expected to see a rise to 1.6% in 2022 from 0.9% average in 2021. Declining inflation and government expenditures Inflation is expected to decline to 2.5% in 2022 from the 3.1% level in 2021; government expenditures are expected to remain above 25% of GDP in 2022. 4.0% 3.4% 3.1% 60.0% 2.5% 41.0% 33.2% 40.0% 2.0% 20.0% 0.0% 0.0% 2020 2021 2022E 2020 2021 2022E 1Q 2022 INVESTOR PRESENTATION SOURCE: IMF April 2022 | *Simple average of three spot prices: Dated Brent, West Texas Intermediate, and Dubai Fateh 45/49
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